Call it an “amicable divorce.”
The State Investment Board is pulling $120 million in investment funds from management by the Bank of North Dakota – and it will be put in the private capital manager, State Street. This is happening, in part, because the Bank didn’t make a transfer as soon as it should have last year.
Interim state Chief Investment Officer Darren Schulz says the Bank was asked to complete the transition by the end of April, 2012.
"The transition was not accomplished until the end of July," said Schulz. "During that period of time, the holdings underperformed by $2.54 million. But they're (the Bank) making it good."
Schulz says the Bank was asked to lower the fees it charges the investment board to manage these funds. The Bank declined – and suggested the Investment Board make the change.
But it is not a complete divorce.
"We'll continue to work with the Bank on the match loan CD program," said Schulz. "We will certainly explore other avenues that may arise."
The Investment Board still has more than $150 million in the Bank of North Dakota.
